Telecommunications provider Optus has extended a three-year co-sourcing contract for the development, management and support of telco's business applications.
As part of the deal, IBM's Regional Software Solutions Centre (RSSC) will manage applications such as billing, customer care and enterprise resource planning. IBM staff will integrate with Optus throughout the three-year contract to oversee internal project delivery.
Optus chief executive Paul O' Sullivan expects the contract will deliver cost savings of around 40 percent over the next three years.
"The agreement will help Optus achieve greater output from its applications portfolio, reduce costs and transform business processes," O' Sullivan said.
"IBM will also facilitate a knowledge transfer process whereby IBM developers will transfer their skills and knowledge to Optus' IT staff."
O' Sullivan added that these arrangements will maintain key IT skills in Australia.
IBM application management services general manager David Norris said over the next three years IBM will work towards achieving greater output and increased value from the existing IT infrastructure within Optus.
"The extension of this partnership is a strong endorsement of the fact that we are delivering business value and cost savings," Norris said.
"A key component of the agreement is that IBM will provide Optus with a flexible delivery model whereby Optus can scale up resources."